Reported 2 days ago
Municipal bonds have lagged behind other investment-grade bonds this year, with the iShares National Muni Bond ETF (MUB) losing 1.29% as of June 17, compared to a 2.85% gain for the iShares Core US Aggregate Bond ETF (AGG). Factors contributing to MUB's poor performance include illiquidity, uncertainty regarding tax laws, potential cuts in federal funding for state and local governments, and growing pension liabilities. Investors uncertain about the future may find higher yields in munis but should be cautious about their risks and consider diversification.
Source: YAHOO